// Tesco Bank to close all current accounts by end of November
// The company will write to those affected in the next two weeks
// Tesco’s banking arm launched its current accounts in 2014
Tesco Bank has announced it will close all its current accounts by the end of November after noticing that most customers are not using it as their main account.
The grocery giant will write to those affected in the next two weeks to advise them on what to do.
Tesco’s banking arm launched its current accounts in 2014, with interest on balances and Clubcard spending points.
The bank has over five million customers across all of its services and closed current accounts to new business in 2019.
It said there are 213,000 current accounts still open, with Tesco estimating only 12 per cent of these accounts are being used as a primary current account.
Tesco Bank chief executive Gerry Mallon said the lender wanted to offer products that align with the needs of Tesco shoppers.
“With so few of our current account customers using it as their primary account, we want to support them to find a suitable alternative dependent on their circumstances,” Mallon said.
“We will pay particular attention to supporting any vulnerable customers and those in need of financial assistance.
“Customers who have been using our current account as a savings pot may be better suited to one of our tailored savings products.
“And shoppers who are looking for a payment option which allows them to continue collecting Clubcard points in and out of Tesco may want to consider Tesco Clubcard Pay or a Tesco Bank credit card.”
The move comes after Marks & Spencer announced in early July that it closed its 29 bank branches, with all its current accounts shutting down at the end of August.